Letter to the Editor Ontario Hydro cost conscious

Costs are a major consideration for all projects undertaken by Hydro. This is evident in the fact that Ontario consumers pay some of the lowest electricity rates in North America.

It is inaccurate to compare the costs of acid gas reductions in the smelting industry with those in electricity production. Government and industry were aware when the emission reduction regulations were set that the cost to Ontario Hydro would be much greater than to Inco, Falconbridge and Algoma Steel.

There are several reasons for the higher costs. One is that S02 concentrations in smelters are much higher than in generating stations. You and your readers will appreciate that it costs less per ton to “mine” a rich mine than a poor one.

In addition, Hydro is planning to reduce emissions by 60% while increasing production by the same amount. The smelters are maintaining production levels. Because Hydro has more plants than the others it will have to install more equipment. The $2.5 billion expenditure not only includes the cost of installing scrubbers, but also their operating and waste disposal costs.

It is unfair to imply that Hydro is not living in the real world because it will raise its rates to pay the cost of its acid gas clean up while Inco uses its profit. The province’s Power Corporation Act does not allow Hydro to make a profit. Hydro provides electricity to its customers at cost. All expenditures must be factored into the cost of electricity supplied to the customers who benefit.

Our customers, as the editorial notes, have indicated their willingness to pay slightly more for electricity to protect the environment. G. R. Barrett Director Northeastern Region Ontario Hydro North Bay, Ont.

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